[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1092(c)-3]

[Page 232]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1092(c)-3  Qualifying over-the-counter options.

    (a) In general. Under section 1092(c)(4)(B)(i), an equity option is 
not a qualified covered call option unless it is traded on a national 
securities exchange that is registered with the Securities and Exchange 
Commission or other market that the Secretary determines has rules 
adequate to carry out the purposes of section 1092(c)(4). In accordance 
with section 1092(c)(4)(H), this requirement is modified as provided in 
paragraph (b) of this section.
    (b) Qualified covered call option status. A qualifying over-the-
counter option, as defined in Sec. 1.1092(c)-4(c), is a qualified 
covered call option if it meets the requirements of Sec. Sec. 
1.1092(c)-1 and 1.1092(c)-2(c) after using the language ``qualifying 
over-the-counter option'' in place of ``equity option with flexible 
terms''. For purposes of this paragraph (b), a qualifying over-the-
counter option is deemed to satisfy the requirements of section 
1092(c)(4)(B)(i).
    (c) Effective date. This section applies to qualifying over-the-
counter options entered into on or after July 29, 2002.

[67 FR 20900, Apr. 29, 2002]